(Ecofin Agency) - The world’s second largest miner according to PwC, amid global iron ore prices fall. « In the current market environment, we don’t see a way forward in relation to Simandou,” Rio Tinto’s new CEO, Jean-Sébastien Jacques told The Times in an interview.

The announcement comes after the firm last May submitted to the government a bankable feasibility study on the project, comprising the mine’s study and that for required infrastructures.

Simandou which is considered as the world’s largest untapped high grade iron ore resource, should, according to a 2014 report, $7.5 billion of revenues and increase Guinea’s gross domestic product by $5.6 billion, which should have been the highest growth level in the world. These data explain why Guinea’s minister of mining intends to pursue the project despite Rio Tinto’s decision. “Despite this challenge, we believe we will find funding with partners who share our point of view in the long-term,” said Abdoulaye Magassouba.

South Simandou is an iron ore mine to which is integrated another transport infrastructure project. The high grade iron ore deposit (65.5% Fe) can sustain a mine life in excess of 40 years during which it can produce 100 million tons each year.

Louis-Nino Kansoun